Tag: stock

Asian stocks were mixed on Wednesday ahead of a policy decision by the U.S. Federal Reserve. The widely anticipated trading debut of SoftBank Corp, the mobile unit of Japanese conglomerate SoftBank Group, ended in disappointment. The company’s shares closed 14.5 percent lower than its initial public offering price of 1,500 yen ($13.36). If they’d been able to hold above that 1,500-level (IPO price), it could have been a different story,” said Andrew Jackson, head of Japanese equities at SooChow

Asian stocks were mixed on Wednesday ahead of a policy decision by the U.S. Federal Reserve.

The widely anticipated trading debut of SoftBank Corp, the mobile unit of Japanese conglomerate SoftBank Group, ended in disappointment. The company’s shares closed 14.5 percent lower than its initial public offering price of 1,500 yen ($13.36). It was the most heavily-traded stock on the Tokyo Stock Exchange.

SoftBank Corp’s 2.65 trillion yen ($23.6 billion) IPO is the largest ever in Japan and the second-largest in the world behind Alibaba’s $25 billion IPO in 2014.

“I’m not 100 percent surprised that it’s down this much. If they’d been able to hold above that 1,500-level (IPO price), it could have been a different story,” said Andrew Jackson, head of Japanese equities at SooChow CSSD Capital Markets Asia.

“Once it dipped below it, a lot of these retail investors, first-time investors who don’t really know much about the markets, are probably in a big hurry to get out,” Jackson told CNBC’s “Street Sign,” noting that around 90 percent of those that subscribed to SoftBank Corp’s IPO were retail investors.

In the broader Japanese market, the Nikkei 225 finished the day 0.6 percent to 20,987.92 and the Topix closed 0.41 percent down to 1,556.15.

U.S. futures pointed to a slight recovery for the three major stock indexes at Tuesday’s open after the market rout a day earlier. The Dow Jones Industrial Average futures climbed 30 points, implying a gain of 100.02 for the index at Tuesday’s market open, as of 4:40 a.m. S&P 500 and Nasdaq futures also pointed to slight gains for the two other major stock indexes. Stocks had fallen sharply on Monday ahead of the Federal Reserve Bank’s anticipated rate hike this week. The Cboe Volatility Index —

U.S. futures pointed to a slight recovery for the three major stock indexes at Tuesday’s open after the market rout a day earlier.

The Dow Jones Industrial Average futures climbed 30 points, implying a gain of 100.02 for the index at Tuesday’s market open, as of 4:40 a.m. ET Tuesday. S&P 500 and Nasdaq futures also pointed to slight gains for the two other major stock indexes.

The S&P 500 fell 2 percent to 2,545.94 — its lowest close for 2018. The Dow Jones Industrial Average also plunged 507.53 points to close at 23,592.98, ratcheting up a combined two-day loss of more than 1,000 points.

The Nasdaq Composite saw declines, falling 2.27 percent to end the trading day at 6,753.73.

The Cboe Volatility Index — one of Wall Street’s gauges of market fear — rose above 25 and volume for the stock market was heavier than usual.

The Fed is widely expected to hike its benchmark overnight lending rate for a fourth and final time of 2018 when it concludes a two-day policy meeting on Wednesday. While fears of rising interest rates have spooked markets throughout the year, such concerns have heightened over the past month as inflation and growth expectations recede.

U.S. President Donald Trump took aim at the Fed again on Monday, saying in a tweet that “it is incredible” that the central bank was “even considering yet another interest rate hike” amid the “outside world blowing up around us.”

Trump has openly criticized the Fed, as well as Fed Chairman Jerome Powell, several times in 2018.

The stock, one-fourth of the FANG trade, has tanked 23 percent since the beginning of October, tracking for its worst quarter since the fourth quarter of 2008. There could be more downside ahead for the stock, said Ari Wald, head of technical analysis at Oppenheimer. “We still think this stock works for the long term. Bullish long term, near term let it stabilize for longer.” “We have to separate Amazon the company from Amazon the stock,” Schlossberg said Monday on “Trading Nation.”

The stock, one-fourth of the FANG trade, has tanked 23 percent since the beginning of October, tracking for its worst quarter since the fourth quarter of 2008.

There could be more downside ahead for the stock, said Ari Wald, head of technical analysis at Oppenheimer.

“The stock needs additional time to stabilize but we think it is fine for the long term and probably one of the better-looking retail charts with the rest of that group really breaking down,” Wald said Monday on CNBC’s “Trading Nation.”

“What’s important to note here is that while the S&P 500 is breaking below its October low, Amazon is still above it, trying to make this higher low. That is a sign of relative strength that we like to see,” added Wald.

“For levels, $1,450 is one we’re watching. There’s a key retracement there,” said Wald. “We still think this stock works for the long term. Bullish long term, near term let it stabilize for longer.”

Amazon last broke below $1,450 on Nov. 20. It is a 6.6 percent decline from reaching it again.

The fundamentals case supports longer-term gains even if the stock’s performance suggest more pain could come, said Boris Schlossberg, managing director of FX strategy at BK Asset Management.

“We have to separate Amazon the company from Amazon the stock,” Schlossberg said Monday on “Trading Nation.” “The stock went on a parabolic run and now it’s correcting properly.”

At its peak in September, Amazon shares had rallied 75 percent for the year. Since then, it has tumbled 24 percent and entered a bear market.

As a company, Amazon should continue to deliver, said Schlossberg.

“Amazon is just simply an unbelievable juggernaut of execution and I love it for the long term, but for the short term the stock is going to wallow so you probably just want to simply collect it by selling puts,” he said.

Selling a put is typically a bullish bet where the seller has an obligation to buy the stock at a predetermined price.

Wall Street concerns about “unforeseen consequences” from another Federal Reserve interest rate hike were keeping a lid on Tuesday’s stock market rebound, according to veteran trader Art Cashin. Against the backdrop of higher rates, investors are “very nervous” about global economic growth slowing and uncertainty around the U.S. trade war with China, said the UBS director of floor operations at the New York Stock Exchange. Cashin said there are several investors on the sidelines ahead of the Fed

Against the backdrop of higher rates, investors are “very nervous” about global economic growth slowing and uncertainty around the U.S. trade war with China, said the UBS director of floor operations at the New York Stock Exchange. “They don’t know how much built-in tolerance for rate hikes there are. This is more than the normal amount of nervousness,” he added.

Cashin appeared on CNBC’s “Squawk on the Street” on Tuesday as the Dow Jones Industrial Average was up more than 1 percent in midday trading. He said the Dow appeared to be meeting intraday resistance at around 23,900.

The Dow was bouncing off a two-session plunge of more than 4 percent amid fears that the Fed’s path for higher rates could be too much for the economy and market to handle.

The central bank is expected to raise rates for a fourth time this year at the conclusion of its two-day December policy meeting Wednesday. The Dow, as of Monday’s close, was having its worst December performance since 1980, and was on pace for its worst December start since the Great Depression.

Cashin said there are several investors on the sidelines ahead of the Fed rate increase decision. He added the amount of pushback on the Fed hike, including from President Donald Trump, is “borderline historical.”

Earlier this month, Cashin said he was “quite doubtful” of the three rate hikes that central bankers had projected for 2019 after their September meeting. The market expects a more scaled-back rate path Wednesday.

Its extreme sell-off has pushed its stock down 33 percent from record highs set at the beginning of the year. The lowest bounce was 25 percent so that’s very positive,” added Maley. Following earnings, Maley added in an email that $180 to $185 should provide solid support for the stock even as it falls. “At the end of the day, this is an inexpensive stock and it’s definitely been beaten down I think aggressively and I think it’s cheap,” added Sanchez. FedEx trades at 10 times forward earnings, w

The stock is down 4 percent after the bell and tracking for its worst month in nearly a decade.

The package-delivery company has plummeted 20 percent in December, a loss not seen since January 2009. Its extreme sell-off has pushed its stock down 33 percent from record highs set at the beginning of the year.

“It actually has a lot of potential,” Maley said on CNBC’s “Trading Nation” on Tuesday. “If you look at the weekly chart, it’s broken below its 200-week moving average. Usually that’s pretty negative for a stock. However, if you look, it’s only done that three times since the financial crisis and in all three of those occasions it bounced back very quickly.”

When FedEx has previously broken below that long-term trendline, it has averaged a 45 percent rally over the following six months, according to Maley’s calculations.

The severity of its recent declines has also set up a strong technical picture, he said.

“Look at its weekly RSI, it’s only been this oversold five other times and each one of those cases, it’s bounced back strongly. The lowest bounce was 25 percent so that’s very positive,” added Maley.

A 25 percent gain would take FedEx shares above $230. It has not traded above that level since the beginning of the month.

Following earnings, Maley added in an email that $180 to $185 should provide solid support for the stock even as it falls. It has not fallen below $180 in just over two years.

Gina Sanchez, CEO of Chantico Global, says some of the damage to FedEx may have been too extreme.

“If you look at what’s been weighing down FedEx recently, it’s been the concern around China and where trade goes from here — obviously that matters to FedEx — but also what happens with Amazon Air,” said Sanchez.

Those risks could be already priced in and might be fading, says Sanchez. On trade, progress is expected in talks with China in the New Year, while Sanchez notes there have been doubts over how well Amazon can efficiently execute on last-mile deliveries.

“At the end of the day, this is an inexpensive stock and it’s definitely been beaten down I think aggressively and I think it’s cheap,” added Sanchez.

FedEx trades at 10 times forward earnings, well below its peak of 17.6 times at the beginning of the year. The S&P 500 trades at 14.6 times forward earnings.

Dow futures implied a slide of about 41 points at the open on Monday, as of 7:20 a.m. S&P 500 and Nasdaq futures also pointed to a slightly lower open. Recent economic data have reignited worries of economic slowdown around the globe and kept a lid on stock returns. The Dow fell nearly 500 points and the S&P 500 closed down 1.9 percent on Friday to 2,599.95 — its lowest closing level since April — after China reported industrial output and retail sales growth numbers for November that missed exp

Dow Jones Industrial Average futures pointed to a slightly negative start for Monday’s open after all three major U.S. indexes closed in correction territory for the first time since March 2016 in the prior trading session.

Dow futures implied a slide of about 41 points at the open on Monday, as of 7:20 a.m. ET. S&P 500 and Nasdaq futures also pointed to a slightly lower open.

Recent economic data have reignited worries of economic slowdown around the globe and kept a lid on stock returns. The Dow fell nearly 500 points and the S&P 500 closed down 1.9 percent on Friday to 2,599.95 — its lowest closing level since April — after China reported industrial output and retail sales growth numbers for November that missed expectations.

The latest economic data offered yet another hint that Beijing’s economy may be decelerating amid rising trade risks as President Xi Jinping tries to broker a permanent truce with President Donald Trump. The two nations have slapped tariffs on billions of dollars worth of goods over the past year as disagreements over the handling of intellectual property and a yawning trade deficit pit the world’s two largest economies against each other.

Investors are also on edge ahead of the December meeting of the Federal Reserve’s policymaking arm. The Federal Open Market Committee is expected to hike its benchmark overnight lending rate for a fourth and final time of 2018 this week. While fears of rising interest rates and an ambitious Fed have spooked markets throughout 2018, such concerns have evolved over the past month as inflation and growth expectations recede.

“I’m pretty sure this is a bear market,” Gundlach told Scott Wapner on CNBC’s “Halftime Report.” “We’ve had pretty much all of the variables which characterize a bear market,” Gundlach added. The S&P 500 is not in a bear market yet, down 11 percent from its record high reached in September. Wall Street traditionally defines a bear market as a decline of 20 percent or more. Stocks fall into a bear market typically after “something happens that doesn’t make any sense at all,” Gundlach said.

“We’ve had pretty much all of the variables which characterize a bear market,” Gundlach added.

The S&P 500 is not in a bear market yet, down 11 percent from its record high reached in September. Wall Street traditionally defines a bear market as a decline of 20 percent or more. The S&P 500 fell as low as 2532.69 in February, a little more than 2 percent lower from where it is now.

Stocks fall into a bear market typically after “something happens that doesn’t make any sense at all,” Gundlach said. Cryptocurrency is the “mania” this time around, he said. Gundlach said bitcoin is an indicator of the market getting ahead of itself, much like during the dotcom bubble when technology companies “were being IPO’d that had no sales” or in 2006 when subprime lending “went on longer than it should have.”

Bitcoin began to fall early in 2018. “One after another you start to see various sectors of the market give it up” after cryptocurrencies sold off heavily, Gundlach said. After each of the major stock indexes “rolled over,” Gundlach said the bull market was “down to the FAANGs.” But even those bellwethers of growth didn’t last. The five FAANG stocks – Facebook, Amazon, Apple, Netflix and Google-parent Alphabet – are currently in or near bear markets.

“That was kind of the last straw” of the bull market, Gundlach said.

But it was only when the trade war between the U.S. and China collided with the Federal Reserve’s rising interest rates that the sell off began in earnest. In early October “suddenly the market seemed to wake up to the fact that this was real and the next day the stock market tipped over,” Gundlach said. Additionally, he thinks that President Donald Trump’s trade fight with China is not going to get better any time soon.

He said his best idea for 2019 is “capital preservation.” Gundlach defines that as “high quality, lower volatility, lower duration bond funds” he said.

Gundlach predicted in March that the closely-watched 10-year Treasury yield would hit 3 percent and send stocks tumbling. His call came true a few months ago, as October was one of the worst months for U.S. stocks since the financial crisis.

Gundlach revealed in February that he was betting against Facebook shares. He said his short was due to falling public perceptions of the company. Facebook’s stock is down more than 13 percent since Gundlach’s call.

He also in 2017 envisioned bitcoin cratering, saying that “if you short bitcoin today, you’ll make money.” At the time, bitcoin traded at about $16,000. The cryptocurrency now trades at about $3,400, losing about 75 percent of its value this year.

DoubleLine has more than $120 billion in assets under management, according to the firm’s website.﻿

DoubleLine Capital CEO Jeffrey Gundlach took a shot at passive investment strategies such as index funds on Monday, declaring the investing strategy a “mania” that is causing widespread problems in global stock markets. “I’m not at all a fan of passive investing. In fact, I think passive investing … has reached mania status as we went into the peak of the global stock market,” Gundlach said, speaking with CNBC’s Scott Wapner on “Halftime Report” in Los Angeles. Index funds are one of the more

DoubleLine Capital CEO Jeffrey Gundlach took a shot at passive investment strategies such as index funds on Monday, declaring the investing strategy a “mania” that is causing widespread problems in global stock markets.

“I’m not at all a fan of passive investing. In fact, I think passive investing … has reached mania status as we went into the peak of the global stock market,” Gundlach said, speaking with CNBC’s Scott Wapner on “Halftime Report” in Los Angeles.

“I think in fact that passive investing and robo advisers … are going to exacerbate problems in the market because it’s herding behavior,” Gundlach added.

Gundlach’s DoubleLine actively manages clients money and has more than $120 billion in assets under management, according to the firm’s website.

Index funds are one of the more popular ways to invest in stocks for many investors. Money has flooded into index funds and exchange-traded funds during this bull market, while active strategies have suffured. The market for index funds has reached $6 trillion, while the market ETFs has ballooned to $5 trillion since the SPDR S&P 500’s inception in 1993. Investors shrugged at the recent recession fears and economic concerns, adding more than $16 billion to U.S.-listed ETFs in the week ending Dec. 13, according to FactSet.

“I wouldn’t advise anyone to be a passive investor,” Gundlach said. “My strongest advice is to not invest in passive U.S. equity funds.”

He said his best idea for 2019 is “capital preservation.” Gundlach defines that as “high quality, lower volatility, lower duration bond funds” he said.

On the flip side, Gundlach said “the worst thing you can do is what everybody has done: Crowd into S&P 500 index funds because that’s the most expensive market.”

He believes the S&P 500 will break below its February lows eventually and is in a bear market.

The investor made correct predictions for 2018, including a drop in stocks on rising yields and declines in Facebook and bitcoin. He thinks the stock market is headed lower next year, calling for the S&P 500 to fall below the lowest level it hit this year.

December is typically a very positive month for markets. The S&P 500 averages a 1.6 percent gain for December, making it typically the best month for the market, according to the Stock Trader’s Almanac. While the S&P 500 began dissemination in 1950, the performance data was backtested through 1928. It’s worth noting that historically, the second half of December tends to see gains. WATCH: ‘Bond King’ Jeffrey Gundlach says S&P 500 has already entered bear market

Dow Jones Industrial Average futures pointed to a slightly negative start for Monday’s open after all three major U.S. indexes closed in correction territory for the first time since March 2016 in the prior trading session. Dow futures were down 17.00 points, implying a loss of 18.51 points at the open on Monday stateside, as of 3:28 a.m. S&P 500 and Nasdaq futures also pointed to a lower open for the two indexes. Recent economic data have reignited worries of economic slowdown around the globe

Dow Jones Industrial Average futures pointed to a slightly negative start for Monday’s open after all three major U.S. indexes closed in correction territory for the first time since March 2016 in the prior trading session.

Dow futures were down 17.00 points, implying a loss of 18.51 points at the open on Monday stateside, as of 3:28 a.m. ET. S&P 500 and Nasdaq futures also pointed to a lower open for the two indexes.

Recent economic data have reignited worries of economic slowdown around the globe and kept a lid on stock returns. The Dow fell nearly 500 points and the S&P 500 closed down 1.9 percent on Friday to 2,599.95 — its lowest closing level since April — after China reported industrial output and retail sales growth numbers for November that missed expectations.

The latest economic data offered yet another hint that Beijing’s economy may be decelerating amid rising trade risks as President Xi Jinping tries to broker a permanent truce with President Donald Trump. The two nations have slapped tariffs on billions of dollars worth of goods over the past year as disagreements over the handling of intellectual property and a yawning trade deficit pit the world’s two largest economies against each other.

Investors are also on edge ahead of the December meeting of the Federal Reserve’s policymaking arm. The Federal Open Market Committee is expected to hike its benchmark overnight lending rate for a fourth and final time of 2018 this week. While fears of rising interest rates and an ambitious Fed have spooked markets throughout 2018, such concerns have evolved over the past month as inflation and growth expectations recede.